Mohini purchased a computer for Rs 37960 including VAT at 4%. What is the original price of the computer?

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Solution

Let the original price of the computer be Rs x.
$VAT = 4 % of Rs . x = Rs . (x \times \frac{4}{100}) = Rs . \frac{4 x}{100}$
∴ Price including VAT $= Rs . (x + \frac{4 x}{100})$
$= Rs . \frac{104 x}{100}$
$Now, \frac{104 x}{100} = 37960 \Rightarrow x = (37960 \times \frac{100}{104}) = 36500$

∴ The original price of the computer is Rs 36,500

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Mohini purchased a computer for Rs 37960 including VAT at 4%. What is the original price of the computer?

Let the original price of the computer be Rs x. VAT=4% of Rs.x =Rs.x×4100 =Rs.4x100 ∴ Price including VAT=Rs.x+4x100 =Rs.104x100 Now, 104x100= 37960⇒x=37960×100104 = 36500 ∴ The original price of the computer is Rs 36,500